Modifications etc. (not altering text)
C1Pt. 2 applied (with modifications) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)
C2Pt. 2 applied (with modifications) by Social Security Contributions and Benefits Act 1992 (c. 4), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)
C3Pt. 2 modified (14.9.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (S.I. 2023/912), regs. 1(2), 41(1) (with reg. 1(3))
Textual Amendments
F1S. 12AA and cross-heading inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 184; S.I. 1998/3173, art. 2
[F3(1)Every [F4partnership return] shall include a statement (a partnership statement) of the following amounts, namely—
(a)in the case of [F5the period in respect of which the return is made and each period of account ending within that period]—
(i)the amount of income or loss from each source which, on the basis of the information contained in the return and taking into account any relief or allowance a section 42(7) claim for which is included in the return, has accrued to or has been sustained by the partnership for [F6the period in question],
[F7(ia)the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,] [F8and]
(ii)each amount of income tax which, on that basis, has been deducted or treated as deducted from any income of the partnership, or treated as paid on any such income, for that period, F9...
F9(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)in the case of each such period [F11as is mentioned in paragraph (a) above] and each of the partners, the amount which, on that basis and (where applicable) taking into account any such relief or allowance, is equal to his share of that income, loss, [F12consideration] [F13or tax].]
[F14(1A)Where at any time in a period mentioned in subsection (1)(a) the reporting partnership is a partner in another partnership which carries on a trade, profession or business—
(a)income or loss that the reporting partnership accrues or sustains thereby is to be treated for the purposes of subsection (1)(a)(i) as from a source that is separate from any of its other sources of income or loss,
(b)consideration in respect of the disposal of partnership property that the reporting partnership accrues thereby is to be treated for the purposes of subsection (1)(a)(ia) as from a source that is separate from any of its other sources of consideration,
(c)income tax which has been deducted or treated as deducted from, or paid on, any income that the reporting partnership accrues thereby is to be treated for the purposes of subsection (1)(a)(ii) as being deducted or treated as deducted from, or paid on, a source of income that is separate from any of its other sources of income, and
(d)amounts specified in the partnership statement under subsection (1)(a) must include—
(i)each amount which is stated to be equal to the reporting partnership's share of income, loss, consideration or tax in any partnership statement made under this section in relation to the other partnership for the period for which the return is made or a period which includes that period or any part of it, and
(ii)a statement as to which of the assumptions in subsection (1B) was applied in calculating that amount.
(1B)If at any time in a period mentioned in subsection (1)(a) the reporting partnership includes a partner which is itself a partnership (“the participating partnership”), the amounts referred to in subsection (1)(b) must be calculated and included in the partnership statement applying each of the following assumptions to the participating partnership—
(a)that it is a UK resident individual;
(b)that it is a non-UK resident individual;
(c)that it is a UK resident company;
(d)that it is a non-UK resident company.
(1C)But subsection (1D) applies if the partnership return includes—
(a)the name of every person who was an indirect partner in the reporting partnership at any time in a period mentioned in subsection (1)(a), and
(b)at least some of the following information—
(i)whether a person named under paragraph (a) is an individual, company or partnership (or something else),
(ii)in the case of such a person who is an individual, whether the individual was or was not resident in the United Kingdom in the year of assessment for which the partnership return is made, and
(iii)in the case of such a person who is a company, whether the company was or was not resident in the United Kingdom for each accounting period of the company which includes all, or any part of, a period mentioned in subsection (1)(a).
(1D)In subsection (1B)—
(a)ignore either or both of paragraph (a) and (b) if it is apparent from information provided under subsection (1C) that none of the indirect partners of the reporting partnership is a person of a description specified in that paragraph at any time in the year of assessment for which the return is made, and
(b)ignore either or both of paragraph (c) and (d) if it is apparent from that information that none of the indirect partners is a company of a description specified in that paragraph at any time in any of its accounting periods which include all, or any part of, a period mentioned in subsection (1)(a).]
F15(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F15(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F15(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)In this section—
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F18“indirect partner”, in relation to the reporting partnership, is to be construed in accordance with section 12AA(1C);]
[F18“reporting partnership” means the partnership to which the partnership statement referred to in subsection (1) relates;]
[F19“section 42(7) claim” means a claim under any of the provisions mentioned in section 42(7) of this Act;]
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]
Textual Amendments
F2S. 12AB inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 185; S.I. 1998/3173, art. 2
F3S. 12AB(1) substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 104(7)
F4Words in s. 12AB(1) substituted (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 19
F5Words in s. 12AB(1)(a) substituted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(5)(a)
F6Words in s. 12AB(1)(a)(i) substituted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(5)(b)
F7S. 12AB(1)(ia) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(5)(c)
F8Word in s. 12AB(1)(a) inserted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 51(6)(a)(i)
F9S. 12AB(1)(a)(iii) and preceding word omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 51(6)(a)(ii)
F10S. 12AB(1)(a)(iv) and preceding word repealed (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 245(2)(b), Sch. 3 Pt. 1 (with Sch. 2)
F11Words in s. 12AB(1)(b) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(5)(d)
F12Word in s. 12AB(1)(b) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(5)(d)
F13Words in s. 12AB(1)(b) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 51(6)(b)
F14S. 12AB(1A)-(1D) inserted (with effect in accordance with Sch. 6 para. 6(5) of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 6(3)
F15S. 12AB(2)-(4) repealed (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 3(1), Sch. 33 Pt. 2(13) Note
F16Words in s. 12AB(5) repealed (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 3(1), Sch. 33 Pt. 2(13) Note
F17Words in s. 12AB(5) repealed (24.7.2002) by Finance Act 2002 (c. 23), Sch. 40 Pt. 3(16)
F18Words in s. 12AB(5) inserted (with effect in accordance with Sch. 6 para. 6(5) of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 6(4)
F19Words in s. 12AB(5) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 104(8)
F20Words in s. 12AB(5) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 51(6)(c)